Area auto dealers seeing impact of gas prices on consumer priorities

Published 8:00 pm, Thursday, June 22, 2006

UPPER THUMB  If a roller coaster could be modeled after gas price fluctuations, car buyers would be on one ride that would give even Cedar Point a run for its money.

I think the largest thing right now with the economy is the fluctuation with the gas price … (as when) a person commutes every day to work and one day its $43 to fill up your tank and the next day its $60, said Al Wasik, of Bell-Wasik Pontiac GMC Buick Inc., in Caro. Its just this continual influx of price thats driving everybody to wonder whats going on.

Gas prices just barely decreased this week to a national average of $2.87 per gallon from $2.90 a week ago, according to the U.S. Energy Information Administration. That still is up from $2.16 a year ago.

Many consumers are opting to step away from the amusement park of gasoline-associated budget woes, turning to more fuel-efficient vehicles.

A May survey by Consumer Reports found 37 percent of people in the market for a vehicle want a more fuel-efficient model than they currently own.

And car sales at the local level seem to mirror those findings.

Granted we still sell pick-ups, but weve seen an increase in small cars, said Greg Viers, sales manager at Graff Chevrolet Buick Oldsmobile, Inc., in Sandusky. (Some) people are trading their pick-ups for a car, or their Trail Blazer or Expedition for a car, so the trend is theyre looking for something to save.

Half of those buyers considering replacing their vehicles would consider a gasoline-electric hybrid, the survey found, while 38 percent would look at a flexible-fuel or diesel vehicles.

Consumers in the Thumb area are focusing more on the fuel-flexible vehicles, rather than hybrids, according to local car dealers.

One thing weve had a lot of interest in is the availability of E85, said Dave McCormick of McCormick Motors Inc., in Pigeon. Weve had many customers come in and ask what vehicles we have available that use E85 and also where they can purchase E85.

E85 is a combination of 15 percent gasoline and 85 percent ethanol. E85 FlexFuel vehicles can run on any combination of gasoline and/or E85. E85 is still tough to find at the pump in Michigan, although the Cooperative Elevator Co. recently started selling E85 at its Pigeon and Ruth fueling stations.

We have several vehicles on the road, even locally, that can burn that, so as soon as the service stations offer that, people will be driving around in these vehicles and using that fuel, said Pat Flannery, of Flannery and Sons Buick-Pointiac-GMC, in Bad Axe.

Greg Ordus, owner of George Ordus Ford Lincoln-Mercury Inc., in Bad Axe said it will be a huge benefit for farmers when E85 takes off, and hes already seen an interest at the local level.

I think theres a real interest in it and its something that will benefit farmers, make us less reliant on foreign oil, he said. I actually see down the road more people going to the E85 than going to smaller vehicles.

McCormick said consumers are leaning toward some of the new larger vehicles with higher fuel efficiency.

It always used to be you buy a smaller car, you get better gas mileage … but with the technology changes today, you can buy a midsize car that gets close to the mileage as the small car, he said.

One thing helping General Motors cope with higher fuel costs, and increase in consumer demand for more fuel-efficient vehicles, is an active fuel management system, sometimes described as displacement on demand, Flannery said.

The 2007 Yukon, for example, has an E85 ethanol-capable engine and active fuel management system, he said. It saves fuel by only using half the engines cylinders when driving with a light load, and opening all cylinders when needed for brisk acceleration and hauling heavy loads.

When youre driving and youre accelerating, youre using eight cylinders, Flannery said. But when you get to cruise, it deactivates four cylinders. In addition to these kinds of fuel management systems, McCormick said larger vehicles with ethanol-capable engines are going to be the biggest draw for consumers looking to buy a more fuel efficient vehicle because the bottom line is people want to buy cars with more room.

Some people are more reluctant to buy that compact car just to get five or six miles more, he said.

All in all, most local car dealers agree more patrons in the amusement park called the auto industry/market are willing to wait in the line to ride a more fuel-efficient vehicle.

Theres more of a tendency now than there has been in the past, said Jim Schafer, of Schafer Motors in Sebewaing. Everybodys on a budget and they have to be concerned about fuel economy  thats just a major consideration.